Statistics Canada’s offices at Tunny’s Pasture in Ottawa are shown on March 8, 2019. The Canadian economy grew for a third consecutive month in May, rising 0.2 per cent overall as 13 of 20 sectors advanced. Statistics Canada says the increase in real gross domestic product was led by a rebound in manufacturing, after a decline in April. THE CANADIAN PRESS/Justin Tang

Canada’s GDP grows 0.2 per cent in May as manufacturing rebounds: Statcan

Statistics Canada’s GDP report said wholesale trade fell 1.4 per cent in May

The Canadian economy grew for a third consecutive month in May, rising 0.2 per cent overall as 13 of 20 sectors advanced, Statistics Canada reported Wednesday.

The growth in gross domestic product was above analyst estimates of 0.1 per cent growth and showed renewed strength in manufacturing, which rebounded from an April dip, as well as continued growth in construction.

Douglas Porter, chief economist at BMO Capital Markets, said May’s growth was slightly more positive than the month’s numbers indicate because Statistics Canada also revised April’s number to 0.33 per cent growth from 0.26 per cent.

“The above-expected GDP gain is all the more impressive since it overcame declines in each of wholesale, retail, utilities, and oil and gas output (oilsands production pulled back six per cent from April),” Porter wrote in a commentary.

He said the slight upward revision to April and the “sturdy” details in May put a “relatively healthier glow on the economy’s spring-time performance.”

TD senior economist Brian DePratto said the May report underscores the strength of a recovery from a weak start to 2019, but noted that manufacturing and real estate were “coming back to life after earlier setbacks.”

“That said, a recovery is a recovery, and with upward revisions to the April report, we upgrade our second quarter GDP growth tracking again, to 3.0 per cent annualized,” DePratto wrote.

Porter agreed that growth for the second quarter will be close to three per cent.

“That compares with (BMO’s) call of 2.5 per cent, and the (Bank of Canada’s) latest official estimate of 2.3 per cent for the quarter,” Porter wrote.

Statistics Canada’s GDP report said wholesale trade fell 1.4 per cent in May, after four months of growth, with all subsectors contracting except building material and supplies (up 0.4 per cent).

Retail trade contracted 0.4 in May, the first month-over-month decline since last summer, while the mining, quarrying and oil-gas extraction sector contracted 0.8 per cent after a 5.5 per cent increase in April.

Oil and gas extraction decreased 2.5 per cent in May, after two months of growth. Excluding oilsands, crude petroleum and natural gas extraction rose 1.1 per cent.

Mining, excluding oil and gas extraction, was up for a third consecutive month with a gain of 2.7 per cent.

Metal ore mining was up 2.6 per cent, non-metallic mining was up 2.1 per cent, led by an export-driven gain in potash (up 3.0 per cent). Coal mining was up 8.3 per cent on higher exports of metallurgical coal, Statistics Canada said.

READ MORE: Statistics Canada says real GDP grew 0.3% in April, tops expectations

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

North Delta actor makes her debut in new Apple TV+ series ‘See’

In a dystopian future where humans can no longer see, society’s rocked by the birth of sighted twins

Surrey’s Sourdif among A-list ‘Players to Watch’ for NHL Entry Draft in Monteal next June

The right-shot forward has eight goals and nine assists with Vancouver Giants this season

Fairs and markets aplenty in Delta this holiday season

Looking for artisan goods, baked treats and hand-crafted gifts? We’ve got you covered.

Over $857,000 in grants for 24 Delta sport, arts and culture organizations

Twenty-four groups are set to receive the funding via provincial community gaming grants

Surrey RCMP doesn’t expect big hit in light of projected $10M cut in B.C. budget

Public safety minister says RCMP informed province about projected budget deficit

VIDEO: B.C. to restrict nicotine content, bring in 20% tax on vaping products

Province will also restrict candy and fruit flavoured vaping products to adult-only stores

Seguin lifts surging Stars to 4-2 win over Canucks

Dallas is 6-0-1 in last seven outings

B.C. government working with RCMP to address $10 million in budget cuts

Public Safety Minister Mike Farnworth issues statement following report of RCMP cost-cutting

UPDATE: Metro Vancouver bus drivers to refuse overtime as transit strike escalates

Overtime ban could disrupt 10-15 per cent of bus service in Metro Vancouver

‘City that protects rapists’: Sexual assault survivor slams Kelowna mayor for defending RCMP

Heather Friesen spent the morning handing out flyers around city hall calling out the mayor

Batten down the hatches: Wet and windy weekend on the way for coastal B.C.

Environment Canada issues special weather warning for Lower Mainland, Vancouver Island

BC Liquor Stores to move fully to paper bags by March

Vancouver Island to be the first to convert to paper bags in November

Tolko shuts B.C. divisions for two weeks over holidays

Head office to close from Dec. 23-27; two weeks’ downtime runs Dec. 21-Jan. 6

Extreme career fair draws hundreds to Langley Events Centre

Black Press event included more than 60 employers

Most Read